Mc. Vanderheijden et al., STOCK ALLOCATION IN GENERAL MULTIECHELON DISTRIBUTION-SYSTEMS WITH (R,S) ORDER-UP-TO-POLICIES, International journal of production economics, 49(2), 1997, pp. 157-174
In this paper we analyze stock allocation policies in general N-echelo
n distribution systems, where it is allowed to hold stock at all level
s in the network. The goal is to achieve differentiated target custome
r service levels (fill rates). Various allocation rules and accompanyi
ng numerical methods that have already been developed for smaller netw
orks are extended and compared in an extensive numerical experiment. W
e conclude that the extension of Balanced Stock rationing (see Van der
Heijden (1996)) is the most accurate method, in particular in cases o
f relatively high imbalance, If the imbalance is not too high, the ext
ension of Consistent Appropriate Share rationing (see De Kok et al., 1
994; Verrijdt and De Kok, 1996) performs good as well.